Question 1

Of the following high-income countries, which has the lowest mortality ratio for cancer?

Accepted Answer

A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States 
A) Canada 
B) Japan 
C) the United Kingdom 
D) the United States

Question 2

Vaccinations tend to result in a positive externality.

Accepted Answer

A) True 
 B)False

Question 3

On average, people in high-income countries ________ than people in low-income countries.

Accepted Answer

A) have a shorter life expectancy 
B) are subject to a higher infant mortality rate 
C) are taller 
D) are exposed to more severe diseases 
A) have a shorter life expectancy 
B) are subject to a higher infant mortality rate 
C) are taller 
D) are exposed to more severe diseases

Question 4

What are the main sources of health insurance in the United States?

Accepted Answer

The percentage of Americans covered by v

Question 5

Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency.

Accepted Answer

A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease 
A) increase; increase 
B) increase; decrease 
C) decrease; increase 
D) decrease; decrease

Question 6

All of the following are part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)except

Accepted Answer

A) individuals with pre-existing medical conditions are able to acquire health insurance. 
B) all policies must provide coverage for dependant children up to age 26. 
C) lifetime dollar maximums on coverage are prohibited. 
D) limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated. 
A) individuals with pre-existing medical conditions are able to acquire health insurance. 
B) all policies must provide coverage for dependant children up to age 26. 
C) lifetime dollar maximums on coverage are prohibited. 
D) limits on the size of deductibles and on waiting periods before coverage takes effect have been eliminated.

Question 7

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should

Accepted Answer

A) offer to pay a price equal to the most she would pay for a good car. 
B) offer to pay a price equal to the most she would pay for a lemon. 
C) offer to pay a price somewhere between the price she would pay for a good car and the price she would pay for a lemon. 
D) save up and buy a new car. 
A) offer to pay a price equal to the most she would pay for a good car. 
B) offer to pay a price equal to the most she would pay for a lemon. 
C) offer to pay a price somewhere between the price she would pay for a good car and the price she would pay for a lemon. 
D) save up and buy a new car.

Question 8

Of the following, which has most likely contributed the most to the rapid rise in health care costs in the United States?

Accepted Answer

A) the cost of malpractice insurance 
B) the cost to treat uninsured patients 
C) slow growth in labor productivity in health care 
D) the cost of malpractice lawsuit settlements 
A) the cost of malpractice insurance 
B) the cost to treat uninsured patients 
C) slow growth in labor productivity in health care 
D) the cost of malpractice lawsuit settlements

Question 9

Of the following U.S.presidents, which was the first to propose a national health insurance program to Congress?

Accepted Answer

A) Barack Obama 
B) Bill Clinton 
C) John F. Kennedy 
D) Harry Truman 
A) Barack Obama 
B) Bill Clinton 
C) John F. Kennedy 
D) Harry Truman

Question 10

If a doctor knows that an insurance company will pay for most of a patient's bill, the doctor has more of an incentive to require additional medical procedures and tests, even if the patient may not require them.This is an example of

Accepted Answer

A) moral hazard. 
B) the principal-agent problem. 
C) asymmetric information. 
D) adverse selection. 
A) moral hazard. 
B) the principal-agent problem. 
C) asymmetric information. 
D) adverse selection.

Question 11

By 2017, spending on federal health care programs such as Medicare and Medicaid had grown to 7 percent of GDP.

Accepted Answer

A) True 
 B)False

Question 12

In the United States, health care spending on people over age 65 is ________ on people aged 18 to 24.

Accepted Answer

A) one third as much as 
B) twice as much as 
C) six times greater than 
D) forty times greater than 
A) one third as much as 
B) twice as much as 
C) six times greater than 
D) forty times greater than

Question 13

Which of the following is not an argument used by economists and policymakers who are in favor of moving toward greater government involvement in health care?

Accepted Answer

A) The increased competition that results from market-based reforms would reduce health care costs and increase economic efficiency. 
B) A single-payer system would reduce the paperwork caused by the current system. 
C) The current Medicare system has had lower administrative costs than have private health insurance companies. 
D) The systems in most other high-income countries have lower levels of health care spending per person which still providing good health outcomes. 
A) The increased competition that results from market-based reforms would reduce health care costs and increase economic efficiency. 
B) A single-payer system would reduce the paperwork caused by the current system. 
C) The current Medicare system has had lower administrative costs than have private health insurance companies. 
D) The systems in most other high-income countries have lower levels of health care spending per person which still providing good health outcomes.

Question 14

"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

Accepted Answer

A) True 
 B)False

Question 15

Health insurance companies impose deductibles on policies and co-payments on claims

Accepted Answer

A) to increase sales. 
B) to reduce moral hazard problems. 
C) to reduces sunk costs. 
D) to increase prices. 
A) to increase sales. 
B) to reduce moral hazard problems. 
C) to reduces sunk costs. 
D) to increase prices.

Question 16

Compared to other high-income countries, health care spending per person in the United States has been

Accepted Answer

A) growing at a faster rate. 
B) declining at a faster rate. 
C) growing at approximately the same rate. 
D) declining at approximately the same rate. 
A) growing at a faster rate. 
B) declining at a faster rate. 
C) growing at approximately the same rate. 
D) declining at approximately the same rate.

Question 17

Briefly describe the most important differences between the market for health care and the market for other goods and services.

Accepted Answer

Doctors and hospitals that supply most h

Question 18

The overall mortality rate in the United States has remained fairly constant for the past 35 years.

Accepted Answer

A) True 
 B)False

Question 19

What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?

Accepted Answer

Health care's share of gross domestic pr

Question 20

Growth in labor productivity in health care has been ________ the growth in labor productivity in the economy as a whole.

Accepted Answer

A) approximately equal to 
B) slightly faster than 
C) almost twice as fast as 
D) less than half as fast as 
A) approximately equal to 
B) slightly faster than 
C) almost twice as fast as 
D) less than half as fast as

Of the following high-income countries, which has the lowest mortality ratio for cancer?

Vaccinations tend to result in a positive externality.

On average, people in high-income countries ________ than people in low-income countries.

What are the main sources of health insurance in the United States?

Economists who support market-based reforms for health care believe that increased competition among providers of health care would costs and economic efficiency.

All of the following are part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)except

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should

Of the following, which has most likely contributed the most to the rapid rise in health care costs in the United States?

Of the following U.S.presidents, which was the first to propose a national health insurance program to Congress?

If a doctor knows that an insurance company will pay for most of a patient's bill, the doctor has more of an incentive to require additional medical procedures and tests, even if the patient may not require them.This is an example of

By 2017, spending on federal health care programs such as Medicare and Medicaid had grown to 7 percent of GDP.

In the United States, health care spending on people over age 65 is ________ on people aged 18 to 24.

Which of the following is not an argument used by economists and policymakers who are in favor of moving toward greater government involvement in health care?

"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

Health insurance companies impose deductibles on policies and co-payments on claims

Compared to other high-income countries, health care spending per person in the United States has been

Briefly describe the most important differences between the market for health care and the market for other goods and services.

The overall mortality rate in the United States has remained fairly constant for the past 35 years.

What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?

Growth in labor productivity in health care has been ________ the growth in labor productivity in the economy as a whole.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Exam 7: The Economics of Health Care

Of the following high-income countries, which has the lowest mortality ratio for cancer?

Vaccinations tend to result in a positive externality.

On average, people in high-income countries ________ than people in low-income countries.

What are the main sources of health insurance in the United States?

Economists who support market-based reforms for health care believe that increased competition among providers of health care would ________ costs and ________ economic efficiency.

All of the following are part of the "regulation of health insurance" provision of the Patient Protection and Affordable Care Act (ACA)except

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should

Of the following, which has most likely contributed the most to the rapid rise in health care costs in the United States?

Of the following U.S.presidents, which was the first to propose a national health insurance program to Congress?

If a doctor knows that an insurance company will pay for most of a patient's bill, the doctor has more of an incentive to require additional medical procedures and tests, even if the patient may not require them.This is an example of

By 2017, spending on federal health care programs such as Medicare and Medicaid had grown to 7 percent of GDP.

In the United States, health care spending on people over age 65 is ________ on people aged 18 to 24.

Which of the following is not an argument used by economists and policymakers who are in favor of moving toward greater government involvement in health care?

"Cost disease" refers to the tendency for low productivity in the service sector to lead to higher costs in those industries.

Health insurance companies impose deductibles on policies and co-payments on claims

Compared to other high-income countries, health care spending per person in the United States has been

Briefly describe the most important differences between the market for health care and the market for other goods and services.

The overall mortality rate in the United States has remained fairly constant for the past 35 years.

What has happened to health care's share of gross domestic product in the United States since 1965? How does this compare to what has happened to out-of-pocket spending on health care as a percentage of all spending on health care?

Growth in labor productivity in health care has been ________ the growth in labor productivity in the economy as a whole.

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: the Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

Elasticity: the Responsiveness of Demand and Supply

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: the Competitive Model in a

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

Pricing Strategy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters

Economists who support market-based reforms for health care believe that increased competition among providers of health care would costs and economic efficiency.